The US Department of Energy (DOE) has finalised a $5.1bn loan package for Alliant Energy to support the expansion of power generation and energy storage at facilities located in Wisconsin and Iowa, reported Reuters.
According to the department, the financing will be directed towards the construction of new natural gas-fired power plants, the addition of energy storage systems (ESS), and upgrades at existing generation sites.
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This initiative is expected to result in several hundred construction jobs and to add or update more than 2.6GW of power generation capacity.
The US DOE figures indicate that this increase could provide electricity for an estimated 1.8 million homes.
The loan package marks an increase from the initial proposal made under the administration of former President Joe Biden, which outlined a conditional $3bn loan in January 2025.
Oversight of the financing falls under the US DOE’s newly renamed Office of Energy Dominance Financing (EDF), previously known as the Loan Programs Office.
The stated focus of the office has shifted from exclusively supporting clean energy projects and alternative vehicles, which faced greater challenges accessing bank loans during the Biden administration. It now also includes projects such as natural gas, which have typically secured conventional financing.
The department noted that energy storage remains eligible under both the original and the current loan agreements.
Commenting on the development, Office of EDF director Gregory Beard said: “By bringing new, dependable power online, we are strengthening our nation’s energy security and lowering electricity costs for families and businesses across Iowa and Wisconsin.”
However, the DOE stated that any potential decrease in electricity prices may take many years, given the loans are structured to be repaid over several decades.
Alliant Energy is a public utility company which supplies electricity to close to one million customers and natural gas to about 430,000 retail customers in the states of Wisconsin and Iowa.
Recently, the US DOE announced an extra allocation of nearly $967m to support projects intended to upgrade the national power grid and help lower electricity costs.
